Digest April 7th

LPL Financial’s Acquisition of Commonwealth Financial Network

LPL Financial has announced plans to acquire Commonwealth Financial Network for $2.7 billion in cash. This acquisition is expected to increase LPL’s advisor count to over 30,000 and add $285 billion in brokerage and advisory assets to its portfolio. Commonwealth will retain its brand post-acquisition, with its founder Joseph Deitch advising during the transition. This move reflects LPL’s strategy of growth through aggressive recruiting and prior acquisitions. ​Barrons

Proposed Legislation to Limit ESG Investing by Pension Funds

U.S. Representative Andy Barr (R-Ky.) has introduced the Ensuring Sound Guidance Act, a bill aimed at mandating pension funds to prioritize maximizing profits over Environmental, Social, and Governance (ESG) goals. While the bill doesn’t ban ESG investments, it requires firms to disclose any differences in fees and returns. This proposal follows a report criticizing state pension funds for prioritizing political agendas over financial returns, potentially impacting retirees’ savings. ​New York Post

Robinhood Launches Low-Cost Robo-Advisor Service

Robinhood Markets has introduced Robinhood Strategies, an actively managed robo-advisor service priced at an annual fee of 0.25% of assets, capped at $250 for Robinhood Gold subscribers. The service features actively managed portfolios, including individual stocks and ETFs. Additionally, Robinhood announced a new banking service for Gold members, offering a 4% APY on savings and other premium banking services. These initiatives mark Robinhood’s expansion into wealth management and banking, aiming to diversify its offerings beyond its brokerage app. ​Barron’s